Strategy For Portfolio Growth Thoughts

[Patrick Q.]

Hello guys,

Reaching out for second opinions/advice on my strategy for RE growth.

My family and I are living in a duplex house hack that we bought in April 2021.

We racked up a bit of debt that we are paying down as quickly as possible to get my credit score back up so that we can get good terms on a refinance and/or HELOC to purchase the next property with.

Any thoughts/constructive input on how I could better approach this would be appreciated.

Plan;

1): pay down all revolving/CC debt currently owed using the avalanche approach. And then save the same amount were paying off the credit cards for use in RE.

2): depending on equity position when debt is gone, shop for refinance and/or HELOC to get down payment for the next property (would love to remove FHA PMI off existing loan while I am at it to increase cashflow on property#1). Note: I have done work to imporve the property since aquisition.

3): buy new multi family house hack in area that we plan to live long term.

4): renovate/add value to property#2, stabilize/season 2nd house hack, refinance to remove PMI and move on to either another house hack or to a SFR in the same area that our family would live in long term (this would not be part of the rental portfolio).

5): continue to add properties to the portfolio and eventualy switch to only work on my portfolio and nolonger work a W-2 job.

Goals:

1): to create a RE portfolio that will grow over time and eventually replace my W-2 income. The proceeds/equity of the initial properties (coupled with my W-2 income) will generate the finances to; continue growth of the portfolio and eventually provide a source of income to replace my W-2.

2): to get the ball rolling on my portfolio and then move my family (and I) to a permanent residence so that they are not part of the RE process anymore.

Regards,
P. Quaid.